S&P Global (SPGI) 10-Q 2006 Q2 Quarterly report

Exhibit (12)

The McGraw-Hill Companies, Inc.

Computation of Ratio of Earnings to Fixed Charges

	June 30, 2006						June 30, 2005
(in thousands)	Six Months			Twelve Months			Six Months
Earnings
Earnings from operations before taxes on income (Note)	$	470,031		$	1,394,556		$	435,437
Fixed charges		44,688			83,512			41,587
Total Earnings	$	514,719		$	1,478,068		$	477,024
Fixed Charges (Note)
Interest expense		12,872			21,692		$	10,802
Portion of rental payments deemed to be interest		31,816			61,820			30,785
Total Fixed Charges	$	44,688		$	83,512		$	41,587
Ratio of Earnings to Fixed Charges		11.5	x		17.7	x		11.5	x

(Note)	For the three and six months ended June 30, 2006, earnings from operations before taxes on income includes $23.0 million and $77.0 million of stock-based compensation expense, respectively.
	For the twelve months ended June 30, 2006, earnings from operations before taxes on income includes $114.4 million of stock-based compensation expense and a $23.2 million restructuring charge. In addition, earnings from operations before taxes on income for the six months ended June 30, 2005 includes earnings of $14.1 million from Corporate Value Consulting, which was divested in 2005.
	“Fixed charges” consist of (1) interest on debt and interest related to the sale leaseback of Rock-McGraw, Inc. (See Note 11 to the Company’s consolidated financial statements); and (2) the portion of the Company’s rental expense deemed representative of the interest factor in rental expense.

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